The 2010 Junior Achievement/AllState Foundation Study, "Teens and Personal Finance," found that 25 percent of teens were either "not very sure" or "not sure at all" about how to budget their money. In 2009, Virtual World News reported on a WeeWorld study of 4,000 teens whose spending remained steady and was even expected to rise during the U.S. economy's recession. Online sellers--including WeeWorld itself, which markets avatars to teens--certainly take notice of this. While the ease of virtual spending may make it difficult for teens to think realistically about money, developing money management skills now will benefit them when they get older.
Create a Budget
Whether you have an after school job, work in the summers or receive an allowance, writing down your income and allocating where your money will go from month to month is an excellent skill that will put you ahead of the curve in adulthood.
Set Goals
Consider two sets of goals. Write down how much you want to save each month. In a separate column, write down high-price items you want to buy. It's easy to engage in magical thinking when a fancy car, a new brand of personal technology or an expensive outfit catches your eye. If you write down the cost of your objects of desire, you may find you don't desire them as much. On the other hand, you might see possibilities for juggling your income, expenses and monthly savings that will allow you to purchase the item.
Be Accountable
By sharing your budget and goals with another person--whether it's a parent or a friend--you become accountable. An added value is that the person with whom you discuss your money situation may have ideas and strategies that would have never occurred to you.
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